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LEGAL ALERT: COVID-19: Suspension of Debt Collection by NYS

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March 20th, 2020
Jane Yue Zhang, Esq.

On March 17, 2020, Governor Andrew M. Cuomo and Attorney General Letitia James announced that effective immediately, the State will temporarily halt the collection of medical and student debt owed to the State and referred to the Office of the Attorney General (OAG) for collection from March 16, 2020 through April 15, 2020.

No application is necessary for this suspension of medical and student debt owed to the State.  After this 30-day period, the OAG will reassess the needs of State residents for additional extensions.

The temporary policy will also automatically suspend the accrual of interest and collection of fees on all outstanding State medical and student debt referred to the OAG for collection.

Additionally, the OAG will accept applications for suspension of all other types of debt owed to the State.  Any persons or businesses that owe non-medical and non-student debts to the State that have been referred to the OAG for collection and litigation and that have been financially impacted by COVID-19 may complete and submit an application to be considered for certain forms of relief, including relief from collection activity, interest accrual, and assessment of collection fees. The application is available on the OAG’s website: https://ag.ny.gov/covid-19-debt-suspension-application

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